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Ventura County Employees' Retirement Association
MARCH 2017
Business Meeting Agenda - V.B. INVESTMENT MANAGER PRESENTATIONS - HARBOURVEST
MASTER PAGE NO. 63 of 174
CONFIDENTIAL
BRETT GORDON
Managing Director, HarbourVest Partners, LLC (Boston)
Brett Gordon is a member of HarbourVest’s secondary investment team. Brett focuses on both traditional and
complex transactions involving the purchase of US and non-US investments. He joined HarbourVest in 1998
after receiving his MBA. Brett currently serves on a number of advisory boards and valuation committees. He
also serves on the Babson College Board of Trustees. Brett’s previous experience includes serving as a vice
president for The Princeton Review of Boston, Inc., where he managed all operational functions of the
organization and was responsible for long range strategic planning. He received a BS (magna cum laude) in
Management from Boston University in 1990 and an MBA (summa cum laude) from Babson College in 1998.
HabourVest team
GREGORY STENTO
Managing Director, HarbourVest Partners, LLC (Boston)
Greg Stento joined HarbourVest in 1998 and focuses on global partnership investments. He is a member of the
Global Investment Committee and also serves on the advisory boards of several private equity partnerships.
Greg joined HarbourVest from Comdisco Ventures, where he was a managing director and provided equity and
debt capital to startup and emerging growth technology and life sciences companies. Prior to Comdisco, he
was a general partner at Horsley Bridge Partners, where he was responsible for making and managing
investments in a variety of private equity partnerships and companies. Greg also spent six years in marketing
and sales at NCR Corporation, where he focused on information technology solutions for financial institutions.
He received a BS (with distinction) from Cornell University in 1982 and an MBA from Harvard Business School
in 1989.
Business Meeting Agenda - V.B. INVESTMENT MANAGER PRESENTATIONS - HARBOURVEST
MASTER PAGE NO. 64 of 174
CONFIDENTIAL
This document has been prepared for Ventura County Employees' Retirement Association (March 2017). It has been prepared on the basis that you are an investment professional, is for the sole use of your organization,
and should not be shared with any other parties.
These materials do not constitute an offer to sell or the solicitation of an offer to buy interests in any Fund (the “Fund”) or any other investment sponsored by HarbourVest Partners L.P. or its affiliates. Any offering of
interests in any Fund will be made solely pursuant to the Private Placement Memorandum of the Fund and subscriptions will be accepted solely pursuant to definitive documentation. Offers and sales of interests in the Fund
will not be registered under the laws of any jurisdiction and will be made solely to “qualified purchasers” as defined in the U.S. Investment Company Act of 1940, as amended. These materials are highly confidential and
must be read in conjunction with the Private Placement Memorandum of the Fund. These materials do not purport to contain all the information relevant to evaluating an investment in the Fund. For additional legal and
regulatory information please refer to important legal disclosures (http://www.harbourvest.com/important-legal-disclosures).
See final pages for additional notes.
I. HarbourVest Overview
II. Investment Update
III. Custom Solutions Overview
Appendix
– Secondary Market Overview
Table of contents
Business Meeting Agenda - V.B. INVESTMENT MANAGER PRESENTATIONS - HARBOURVEST
MASTER PAGE NO. 65 of 174
CONFIDENTIAL
HARBOURVEST OVERVIEW
Business Meeting Agenda - V.B. INVESTMENT MANAGER PRESENTATIONS - HARBOURVEST
MASTER PAGE NO. 66 of 174
CONFIDENTIAL
* This does not indicate approval or endorsement of HarbourVest by the US SEC or UK FCA
HarbourVest overview
Established Firm > Team formed in 1982
> More than $50 billion committed to investments over three decades
> Registered investment adviser with the US Securities and Exchange Commission*
> AIFMD-compliant investment products for European investors*
> Independent, employee-owned
Experienced & Stable Team > Deep team of 400+ employees with more than 100 investment professionals
> 41 managing directors with an average firm tenure of 13 years
> Local teams in Beijing, Bogotá, Boston, Hong Kong, London, Seoul, Tel Aviv, Tokyo
and Toronto
Focus on Private Markets > Global expertise across primary partnerships, secondary investments and direct
co-investments provide clients with market perspectives and actionable insights
> Comprehensive and specialized programs
Proven Track Record > One of the longest track records in the industry
> Demonstrated performance across all strategies
> Consistent approach to portfolio construction
Superior Client Service > Distinguished global investor base
> Responsive to client needs
> Broad infrastructure – accounting, treasury, tax, compliance/regulatory, trading,
investor relations
Strong Risk Controls > SOC 1 reports on controls available to clients and their auditors
Business Meeting Agenda - V.B. INVESTMENT MANAGER PRESENTATIONS - HARBOURVEST
MASTER PAGE NO. 67 of 174
CONFIDENTIAL
As of December 31, 2016.
Based on primary, secondary, and direct commitments made by HarbourVest
Indicates HarbourVest team location
One of the longest established firms in the industry
HarbourVest – Global private markets platform
London
Seoul Beijing North America
First investment 1982
$33.0 billion committed
Latin America
First investment 1994
$0.7 billion committed
EMEA
First investment 1984
$18.9 billion committed
Asia Pacific
First investment 1984
$5.3 billion committed
Toronto
Boston
Bogotá
Tel Aviv
Hong Kong
Tokyo
Expertise across capital structure (equity and debt) and investment types
PRIMARY SECONDARY DIRECT CO-INVEST
$34.4 billion committed $16.9 billion committed $6.6 billion committed
Business Meeting Agenda - V.B. INVESTMENT MANAGER PRESENTATIONS - HARBOURVEST
MASTER PAGE NO. 68 of 174
CONFIDENTIAL
> Consistent approach for three decades
> Integrated investment platform provides significant advantages
– Overlapping knowledge base
– Strong relationships across the industry
– Collaborative environment
– Enhanced deal flow, evaluation, and monitoring
The HarbourVest platform – An integrated approach
Cohesive, global platform
provides significant
advantages in relationship
network, knowledge
sharing, deal flow,
evaluation, and
monitoring
Investment teams are
highly selective, aiming to
identify and deliver strong
returns over time
Shared economics across
the organization promotes
team stability,
collaboration, and
continual information
exchange
Business Meeting Agenda - V.B. INVESTMENT MANAGER PRESENTATIONS - HARBOURVEST
MASTER PAGE NO. 69 of 174
CONFIDENTIAL
Industry leadership
* HarbourVest Partners (Europe) Limited, 3rd Floor, 33 Jermyn Street, London SW1Y 6DN registered in England and Wales number 8618271. Authorized and regulated by the Financial Conduct Authority.
Awards do not necessarily represent investor experience with HarbourVest or its funds, nor do they constitute a recommendation of HarbourVest or its services. Awards are based on surveys that are not limited to investors
in HarbourVest funds and may not have included all of the investors in HarbourVest funds. They are not indicative of future performance
HarbourVest (Europe)*
George Anson, Chairman, 2013-2014
Scott Voss, Board of Directors
Founding Member 2001
Founding Member 2013
Signatory
Founding Member
Kathleen Bacon, 2016
Kathleen Bacon, 2015
Business Meeting Agenda - V.B. INVESTMENT MANAGER PRESENTATIONS - HARBOURVEST
MASTER PAGE NO. 70 of 174
CONFIDENTIAL
INVESTMENT UPDATE
Business Meeting Agenda - V.B. INVESTMENT MANAGER PRESENTATIONS - HARBOURVEST
MASTER PAGE NO. 71 of 174
CONFIDENTIAL
* As of December 31, 2016
Strive to deliver top quartile rates of return while assuming less risk
HarbourVest secondary overview
Differentiated
Approach
Focus on less efficient segments
of the market
Build diversified portfolios
Make investments with
outperformance potential
HarbourVest Platform*
Over 500 managers, 1,000 partnerships,
and 550 advisory board seats
Exposure to more than
7,900 underlying companies
100+ investment professionals
9 offices
Experienced Team
30 years of secondary investing
Over 400 transactions
34 secondary professionals
22 senior professionals with average
tenure of 10 years
Business Meeting Agenda - V.B. INVESTMENT MANAGER PRESENTATIONS - HARBOURVEST
MASTER PAGE NO. 72 of 174
CONFIDENTIAL
Secondary transaction types
Single
Partnership
Interest
Portfolio of
Partnership
Interests
Captive
Team Spinouts
COMPLEX
TRADITIONAL
Joint
Ventures
GP For Hire
Trans.
Take Private
Trans.Single
Partnership
Interest
Portfolio of
Partnership
Interests
Vo
lum
e
Captive
Team Spinouts
COMPLEX
TRADITIONAL
Joint
Ventures
GP For Hire
Trans.
Take Private
Trans.
Business Meeting Agenda - V.B. INVESTMENT MANAGER PRESENTATIONS - HARBOURVEST
MASTER PAGE NO. 73 of 174
CONFIDENTIAL
As of September 30, 2016
Reflects all private equity secondary investments including those made by the Dover Street Program and other HarbourVest funds/accounts. This performance is presented on a gross basis. It reflects the fees, expenses,
and carried interest of the underlying partnership investments, but does not reflect management fees, carried interest, and other expenses borne by investors in the HarbourVest Funds, which will reduce returns. The gross
portfolio internal rate of return does not represent a return of a specific fund or investor; See Note 2 for additional information. Past performance is no guarantee of future returns.
Differentiated approach to portfolio construction
Complex Complex ComplexComplex Traditional Traditional Traditional Traditional
Dover VI
2005
Dover VII
2008
Dover VIII
2012
Dover V
2003
Traditional > Leverage primary relationships and strategic value to general partners
> Be selective, exercise pricing discipline, and focus on higher quality managers
> HarbourVest is a market pioneer
– $6.9 billion invested across more than 900 funds since 1986
> Gross performance of 1.6x and 18.1% IRR
Complex > Focus on less-efficient segments given experience, skills, and resources required to execute
> Leverage HarbourVest platform to enhance competitive positioning
> HarbourVest is a market leader
– $8.0 billion invested across 76 deals since 1995
> Gross performance of 1.7x and 22.2% IRR
Business Meeting Agenda - V.B. INVESTMENT MANAGER PRESENTATIONS - HARBOURVEST
MASTER PAGE NO. 74 of 174
CONFIDENTIAL
Dover Street VIII
Update > Began investing in 2H 2012
> 104% committed to 37 deals since inception
> Well diversified portfolio consistent with stated strategy
> Portfolio performing ahead of plan
– $196 million gain YTD to September 30, 2016
– $1.4 billion gain since inception to September 30, 2016
– $555 million distributed to Partners in 2016,
distributions to Limited Partners total 0.52x contributed
capital at year end
> Completed investment period in 2016
Pie charts are based on cumulative cost of company investments as of September 30, 2016
See final pages for additional notes. This page summarizes the activity and performance of a HarbourVest fund or account. There is no guarantee the investments and relationships referenced will be in a future portfolio.
Past performance is no guarantee of future returns.
$ Millions
Transaction Type Geography Investment YearStage
Venture20%
Buyout75%
Other 5%
Traditional36%
Complex64%
US46%
Europe39%
Asia Pacific 7%
Emerging Markets
8%
Pre-20056% 2005
5%20066%
200718%
200811%2009
4%
20108%
201111%
20128%
20137%
2014-201616%
As of Sep-30 Feb-28
Fund Size $3,591.5 $3,591.5
Committed to Investments 104% 104%
Paid-In Capital $2,918.5 $2,989.3
% Called 83% 84%
Distributions $1,401.3 $1,613.1
DPI 0.5x 0.5x
Total Value $3,995.1
TVPI 1.4x
Net IRR 25.1%
Business Meeting Agenda - V.B. INVESTMENT MANAGER PRESENTATIONS - HARBOURVEST
MASTER PAGE NO. 75 of 174
CONFIDENTIAL
*Performance as of September 30, 2016.
This information is presented on a gross basis and reflects the performance of the investment portfolio, see Note 2. Past performance is no guarantee of future returns.
Dover Street VIII – Strong performance across type, stage, and geography
Deal type Stage Geography
Distributed Current Value
Differentiated Strategy Diversified Approach Global and Local
1.5x 1.4x 1.5x
0.0x
1.0x
2.0x
U.S.58%
Europe32%
Asia /RoW10%
1.5x 1.4x
0.0x
1.0x
2.0x
Buyout85%
Venture / Other15%
1.5x 1.5x
0.0x
1.0x
2.0x
Complex63%
Traditional37%
Business Meeting Agenda - V.B. INVESTMENT MANAGER PRESENTATIONS - HARBOURVEST
MASTER PAGE NO. 76 of 174
CONFIDENTIAL
Dover Street VIII – Summary and outlook
> Concluded commitment period in Q2 2016
> Portfolio fully constructed; consistent with stated strategy
– Well diversified by vintage, geography, and industry
– Comprised of market leading transactions
> Strong early performance
– Attractive discounts at purchase coupled with strong asset appreciation
– Health of portfolio remains strong
> Distribution pace has been ahead of expectations
Business Meeting Agenda - V.B. INVESTMENT MANAGER PRESENTATIONS - HARBOURVEST
MASTER PAGE NO. 77 of 174
CONFIDENTIAL
*Committed not closed, amounts are as of December 31, 2016 and reflect expected final commitment amounts post final closing and any potential syndication.
Note: Diversification estimated based on available data.
Dover Street IX
Update > Final closing in October 2016 at $4.8 billion
> First deal closed in July 2016
> 25% committed to transactions
> Portfolio highly diversified with exposure to
over 500 underlying companies
> First distribution made in December 2016
Geographic Diversification (est)
Complex77%
Traditional23%
Deal Type Stage Geography DescriptionCommitment(millions)
Project Bishop* Complex Buyout Europe / US Public to private $650
Project Switch Complex Buyout Asia Team spinout $281
Project Henderson* Traditional Buyout US Portfolio of LP interests $184
Project Hexagon* Traditional Buyout Europe Portfolio of LP interests $60
Other Investments (7) Traditional Buyout Global / US Portfolio of LP interests $48
Grand Total $1,223
Transaction Type
U.S.40%
Europe37%
RoW23%
Business Meeting Agenda - V.B. INVESTMENT MANAGER PRESENTATIONS - HARBOURVEST
MASTER PAGE NO. 78 of 174
CONFIDENTIAL
CUSTOM SOLUTIONS OVERVIEW
Business Meeting Agenda - V.B. INVESTMENT MANAGER PRESENTATIONS - HARBOURVEST
MASTER PAGE NO. 79 of 174
CONFIDENTIAL
> Helping clients access investment opportunities to reach their goals
> Comprehensive and specialized private markets solutions allow for a modular approach
Private equity solutions for varied investor needs
Venture
Buyout
Secondary
Co-invest
International
Partnership
Programs
Europe
Asia
Emerging
markets
Secondary
Co-invest
Secondary
Programs
Global LP
interests
Secondary
directs
Structured
deals
Direct
Co-invest
Programs
Global
buyout
Global
growth equity
Debt
Specialized
Programs
Emerging
managers
Diverse
managers
Underserved
markets
Niche markets
and sectors
Custom
Solutions
Customized
focus,
strategy,
services,
and structure
US
Partnership
Programs
Global
Partnership
Programs
US
Europe
Rest of World
Secondary
Co-invest
Listed Private Equity
Business Meeting Agenda - V.B. INVESTMENT MANAGER PRESENTATIONS - HARBOURVEST
MASTER PAGE NO. 80 of 174
CONFIDENTIAL
HarbourVest approach to custom solutions
Strategic > HarbourVest selectively offers customized programs with tailored
investment options and a comprehensive menu of services
> Custom, flexible solutions offered over our 30-year history
Collaborative > Work with client and consultant to define objectives consistent with the
client’s risk/return profile
> Cash flow modeling to project pacing needs
> Consistent communication on pipeline, portfolio construction, performance,
and market trends
Flexible > Approval of annual allocation and tactical plan
> Attend GP meetings and/or assume advisory board seats
> Coordination with current SMA manager(s)
Business Meeting Agenda - V.B. INVESTMENT MANAGER PRESENTATIONS - HARBOURVEST
MASTER PAGE NO. 81 of 174
CONFIDENTIAL
Portfolio
Construction
> Access niche markets
> Vintage year diversification
> Complement existing portfolio
> Shorter duration
> Manage overall portfolio volatility
> Manager concentration vs. proliferation
> Leverage co-invest flow from GPs
Cash Flow and
Return Generation
> Potential to generate alpha
> Flexible annual allocations
> Minimize fees
> J-curve mitigation
> Liquidity
> Generate current yield
> Deployment pace
Service and
Flexibility
> Operational support
> Strong control environment
> Balance of internal and external resources
> Flexibility through ongoing refinement and steady communication
What objectives are your highest priority?
Business Meeting Agenda - V.B. INVESTMENT MANAGER PRESENTATIONS - HARBOURVEST
MASTER PAGE NO. 82 of 174
CONFIDENTIAL
Objectives and Approach
Strategic planning framework
Long-term performance,
diversification and pacing
goals defined
Program development and
portfolio construction
Active monitoring, management
and refinement of program
> Legacy portfolio reviewed
> Risk sensitivity assessment
> Macro trend review
> Strategic allocations set
> Investment guidelines formed
> Service level needs established
> Structure defined
> Annual tactical plans reviewed
> Manager selection
> Pipeline reviews
> Market outlooks completed
> Program reviews
> Portfolio analysis
> Performance monitoring
> Benchmarking
> Risk management
> Reporting customization
> Development tracking to plan
> Market trend monitoring
> Knowledge transfer programs
Achieve short and long-term strategy and performance goals
Strategic Assessment
Implementation
Oversight
Business Meeting Agenda - V.B. INVESTMENT MANAGER PRESENTATIONS - HARBOURVEST
MASTER PAGE NO. 83 of 174
CONFIDENTIAL
HarbourVest’s included services
Manage GP
Relationships
Process Capital
Calls
Process
Distributions
Quarterly
Valuations
Performance
analysis
Portfolio
Monitoring and
Reporting
Ensure Document
Retention and
Business
Continuity
Access GP portals Receipt and review
of capital call
notices
Provide wiring
instructions to GPs
Obtain and monitor
receipt of financial
statements
Track investment
and company level
data
Investment and
company level
diversification
Document
management
system
Provide contact
information
Enter into systems Receipt and review
of distribution
notices
Follow-up for
missing statements
as needed
Verify all cash flow
activity and profit /
loss activity
Quarterly reporting
and dynamic ad
hoc reporting
Comprehensive
business continuity
plan
Update contact
information as
needed
Verify call against
unfunded amount
Enter into systems Track auditor and
auditor "quality"
Enter new company
investment (name,
location, business
description)
Performance
measurement
including IRRs and
multiples
Disaster recovery
plan including
replication of data
Maintain list of
relevant GP contacts
Document uses of
cash
Determine if
deemed call /
distribution or
recallable
distribution
Review audit
opinion
Obtain and review
company metrics
(stage, % own,
public/private)
Largest holdings,
manager and
company exposure
Participate in GP
calls and meetings
Verify wire
instructions on file
to notice
Document source
of proceeds
Ensure valuations
are in accordance
with fair value
standards
Capture company
current and realized
cost / value
Cash flow trends
Review and
approval of funding
Liaise with GP for
missing payments
or discrepancies
If method other
than fair value,
determine fair value
along with
investment staff/GP
Track filing and IPO
activity
Company level
performance
including IPOs and
M&A events
Track M&A activity Benchmarking
Business Meeting Agenda - V.B. INVESTMENT MANAGER PRESENTATIONS - HARBOURVEST
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CONFIDENTIAL
APPENDIX
Business Meeting Agenda - V.B. INVESTMENT MANAGER PRESENTATIONS - HARBOURVEST
MASTER PAGE NO. 85 of 174
CONFIDENTIAL
SECONDARY MARKET OVERVIEW
Business Meeting Agenda - V.B. INVESTMENT MANAGER PRESENTATIONS - HARBOURVEST
MASTER PAGE NO. 86 of 174
CONFIDENTIAL
Source: Thomson Reuters; Greenhill Cogent
Growing market opportunity
Market growth fueled by growing primary market
Incremental growth drivers
0
10
20
30
40
50
’05 ’06 ’07 ’08 ’09 ’10 ’11 ′12 ’13 ’14 ’15 ’16
0
200
400
600
800
1,000
$ B
illio
ns
$ B
illion
s
Proliferation of whole fund
liquidity solutions
Proactive portfolio
management
Sovereign wealth funds
becoming more active
sellers
Financial institutions have
significant private equity
assets to be divested
PE NAV > 5 years oldSecondary Market Deal Volume
Business Meeting Agenda - V.B. INVESTMENT MANAGER PRESENTATIONS - HARBOURVEST
MASTER PAGE NO. 87 of 174
CONFIDENTIAL
Expanding universe of secondary deal typescreates opportunity
Ineff
icie
ncy
Traditional
Traditional
Public to
Privates
Secondary
Direct
Portfolios
Structured
Liquidity
Solutions
Fund
Restructurings
Traditional
GP for
Hires
Captive Team
Spinouts
Time Period
Ine
ffic
iency
1985 - 2000 2000 - 2010 Today
LP Tender
Offers
Business Meeting Agenda - V.B. INVESTMENT MANAGER PRESENTATIONS - HARBOURVEST
MASTER PAGE NO. 88 of 174
CONFIDENTIAL
HarbourVest Deal Flow Statistics; Setter Capital
Asset geography by volume
Assets and sellers by geography
54%59%
66%61%
72%
28%27%
18% 25%
16%
18%14% 16% 14% 12%
2012 2013 2014 2015 1H 2016
U.S. Europe Asia/RoW
45%50%
55%
29%26%
31%
26% 24%
14%
2014 2015 1H 2016
North America Europe Asia/RoW
Seller geography by volume
Business Meeting Agenda - V.B. INVESTMENT MANAGER PRESENTATIONS - HARBOURVEST
MASTER PAGE NO. 89 of 174
CONFIDENTIAL
Source: Greenhill Cogent / Setter Capital
Seller type by number of sellers
Broad universe of sellers
20% 18%10%
14%20%
18%
14%15%
13%
24%
19%
25%10%
17%
14%
14%
15%
24%
26%12%
11%
10% 12%
11%
6%
10%12%
24%20%
16% 13% 13%
2012 2013 2014 2015 1H 2016
Public Pensions General Partners
Financial Institutions Endowments & Foundations
Fund of Funds Corporations
Other
> Seller types vary over time as a function of
macro and regulatory environment
> GP-led secondaries have been a material
category since 2013
> Financial institutions remain a significant
source of deal flow
> Varied reasons for selling suggests deal
flow should be strong across cycles
Business Meeting Agenda - V.B. INVESTMENT MANAGER PRESENTATIONS - HARBOURVEST
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CONFIDENTIAL
0
5
10
15
20
25
30
35
40
45
’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16
Aggregate Capital Raised
Source: Preqin Secondary Market Monitor, Greenhill Cogent, Evercore
Fundraising
Secondary fundraising
Fundraising
$ B
illio
ns
Secondary Deal Volume
> Strong fundraising continues
> Some managers oversubscribed while others
challenged
> $134 billion raised since 2011 compared to
$197 billion invested
Business Meeting Agenda - V.B. INVESTMENT MANAGER PRESENTATIONS - HARBOURVEST
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CONFIDENTIAL
Source: Greenhill Cogent
Secondary market pricing
> Highest quality buyout assets trading at or near par
> Widening spread between mature / tail-end assets and more recent vintages
> Deepest discounts on emerging markets assets
> Venture pricing highly dependent on quality and maturity
70%
63%
83% 82% 80%80%
84%
89%93%
91% 92%88% 87%
89%
109%
109%
73%
59%
89% 86%85% 84%
89%92%
100%95% 95%
91%94% 95%
108%103%
63%
68%
70%74% 74%
70%
77%80%
82%80%
82%
74% 73%
78%
0
500
1,000
1,500
2,000
50%
60%
70%
80%
90%
100%
110%
120%
’06 ’07 ’08 ’09 ’10 ’11 ’12 (1H)
’12 (2H)
’13(1H)
’13(2H)
’14(1H)
’14(2H)
’15(1H)
’15(2H)
'16(1H)
'16(2H)
All Buyout Venture S&P 500
Avg. C
losin
g P
rice
‒ S
&P
50
0S
econ
da
ry P
ricin
g (
as a
% o
f N
AV
)
Business Meeting Agenda - V.B. INVESTMENT MANAGER PRESENTATIONS - HARBOURVEST
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CONFIDENTIAL
> Secondary market continues to evolve
> Expect $30 – 40B of secondary deal activity in 2016
> LPs and GPs actively seeking liquidity solutions
> GP-led transactions are complex, critical to have a track record of executing successfully
> Competition varies based on segment
> New market opportunities emerging
Secondary market outlook
Business Meeting Agenda - V.B. INVESTMENT MANAGER PRESENTATIONS - HARBOURVEST
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CONFIDENTIAL
EMERGING AND DIVERSE INVESTMENTS
MANAGING DIRECTOR
Craig Fowler Edward Powers
Matthew HoganBruen Sanjiv Shah
VICE PRESIDENT
Matt Autrey Brook Critchfield
Strong global team
As of November 2016. Includes employees of HarbourVest Partners, LLC, HarbourVest Partners (U.K.) Limited,
HarbourVest Partners (Asia) Limited, HarbourVest Partners (Japan) Limited, HarbourVest Partners, LLC
Oficina de Representación, HarbourVest Investment Consulting (Beijing) Company Limited,
HarbourVest Partners Korea Ltd and HarbourVest Partners (Israel) Ltd
PRIMARY PARTNERSHIPS
MANAGING DIRECTOR
George Anson Julie Ocko
Kathleen Bacon Senia Rapisarda
Carolina Espinal Sally Shan
Ryan Gunther Greg Stento
Tatsuya Kubo Michael Taylor
Hemal Mirani Scott Voss
John Morris
PRINCIPAL
Francisco Arboleda Haide Lui
Alex Barker Amanda Outerbridge
Till Burges Kanji Takenaka
Minjun Chung Chris Walker
Shumin Gong
Mac Grayson
VICE PRESIDENT
Eric Simas Alex Wolf
Stephen Tamburelli
SENIOR ASSOCIATE
Taehyun Yum
ASSOCIATE
Charles Carey Matthew Marotta
Andy Chen Dean Poulos
Michael Karam Angus Walker
Dawan Koo
Chang Liu
HVPE
Richard Hickman, Director of Portfolio Mgmt.
Bill Macaulay, Director of Finance
SENIOR MANAGEMENT
Brooks Zug, Senior Managing Director
OPERATIONS
Julie Eiermann, Managing Director, CDO
Karin Lagerlund, Managing Director / CFO
Tricia Mackechnie, Managing Director, CTO
Mark Reale, Managing Director
Mary Traer, Managing Director / CAO
Monique Austin, SVP, US Counsel
Richard Campbell, SVP, Program Office
Tony Cobuzzi, SVP, Fund Controller
Danielle Green, SVP, CCO
Bruce Pixler, SVP, Director of Tax
Jack Wagner, SVP, Treasurer
Jecca Auchterlonie, VP, Trading
Cory Cook, VP, Fund Controller
Nick du Cros, VP, UK Legal/CO
Kelli Finnegan, VP, Fund Controller
Jason Frigiani, VP, Corporate Controller
Sofia Gertsberg, VP, Investment Risk
Aliza Firestone Goren, VP, Counsel
Adi Kulkarni, VP, Fund Conrtroller
Kathy O’Brien Manzo, VP, BA/BI
Michael Passannante, VP, Asst Treasurer
Sandra Pasquale, VP, Asst Treasurer
Igor Rudfeld, VP, Direct Invest. Controller
David Rule, VP, Global Infrastructure
Dave Stepanis, VP, Portfolio Analytics
SENIOR ADVISORS
John Begg Ed Kane
Kevin Delbridge Fred Maynard
Bill Johnston Ofer Nemirovsky
Martha Vorlicek
SECONDARY INVESTMENTS
MANAGING DIRECTOR
David Atterbury Mike Pugatch
Tim Flower John Toomey
Brett Gordon Kevin Warn-Schindel
Jeff Keay Peter Wilson
PRINCIPAL
Greg Ciesielski Edward Holdsworth
Michael Dean Rajesh Senapati
John Fiato Dustin Willard
Valérie Handal
VICE PRESIDENT
Abuzar Anaswala Justin Lane
Dominic Goh Matt Souza
Thomas Joly Martin Yung
SENIOR ASSOCIATE
Nick Bellisario Alexander Mackinger
Kyle Dowd
ASSOCIATE
Julie Catton Ross Shulman
Elena Kareclas Frank Schwann
Ye Lin Meiping Yap
Peter O’Hanlon Eric Zhang
Emily Ren
DIRECT INVESTMENTS
MANAGING DIRECTOR
Corentin du Roy Alex Rogers
Ian Lane Rob Wadsworth
Peter Lipson Kelvin Yap
PRINCIPAL
Ryan Jones David Zug
Craig MacDonald
VICE PRESIDENT
Cartus Chan Lenny Li
Matthew Cheng Jacqueline Peradotto
Joel Hwang
SENIOR ASSOCIATE
Todd DeAngelo Sebastian Lieb
Gokhan Kara
ASSOCIATE
David Atterman Dennis Kim
Megan Beecher Noel Lam
Charles Dequeker Sophia Maizel
Michael Guiness Alex Robins
Sean Gillespie Junyi Zang
Tucker Johnston
CLIENT RELATIONS
MANAGING DIRECTOR
Nate Bishop Jamie Kase
Aris Hatch Olav König
PRINCIPAL
Simon Lund Mark Radville
Nhora Otalora Ilan Rosen
Janish Patel Laura Thaxter
Fran Peters
VICE PRESIDENT / DIRECTOR
Emily Archer Oren Laufer
Joe Gallitano Deirdre Whann
SENIOR ASSOCIATE
Michelle Ding Steve Schou
Jeong Kim
ASSOCIATE
Aiko Adachi Judy Chang
Libby Burrus Mike DeCenzo
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Contact information
www.harbourvest.com
BEIJINGHarbourVest Investment Consulting (Beijing) Company Limited+86 10 5706 8600
BOGOTÁHarbourVest Partners, LLC Oficina de Representación+57 1 552 1400
BOSTONHarbourVest Partners, LLC+1 617 348 3707
HONG KONGHarbourVest Partners (Asia) Limited+852 2525 2214
LONDONHarbourVest Partners (U.K.) Limited+44 (0)20 7399 9820
SEOULHarbourVest Partners Korea Ltd+82 2 6410 8020
TEL AVIVHarbourVest Partners (Israel) Ltd+972 3 3720123
TOKYOHarbourVest Partners (Japan) Limited+81 3 3284 4320
TORONTOHarbourVest Partners (Canada) Limited+1 647 484 3022
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1. DPI (Distributions / Paid-In Capital), TVPI (Total Value / Paid-In Capital) and Net IRR (Internal Rate of Return) through the applicable date are the returns to limited partners after all fees, operating expenses and carried interest. These returns reflect the combined return for all limited partners in a fund and may not reflect an individual limited partner’s actual return. The Net IRR is calculated using daily cash flows to and from limited partners. In this calculation, the final cash flow to limited partners is the fair market value of all limited partners’ capital accounts at the applicable date as determined by the general partner of the respective HarbourVest fund or account in accordance with the valuation policy. The net multiples (DPI and TVPI) are calculated based on the same cash flows.’ capital accounts at the applicable date as determined by the General Partner in accordance with the valuation policies in the applicable Partnership Agreement.
2. This information (Distributed / Funded, Total Value / Funded, Gross Portfolio IRR, Gross IRR) is presented on a gross basis and reflects the performance of the investment portfolio, including primary fund investments, secondary investments, and/or direct co-investments. For primary and secondary investments, these returns reflects the fees, expenses, and carried interest of the underlying partnership investments, but do not reflect management fees, carried interest, and other expenses borne by investors in the HarbourVest funds/accounts, which will reduce returns. Gross Portfolio IRR represents the annual return calculated using daily cash flows from the funds managed by HarbourVest to and from the various partnerships or companies in which the HarbourVest funds invested during the period specified. These returns do not represent the performance of any specific fund or the return to limited partners.
Note 3 intentionally omitted.
4. Public market comparison represents performance if the respective index had been purchased and sold at the time of the limited partners’ capital calls and distributions, with the remainder held at the date noted. Dividends are not reinvested. Using this methodology, the capital calls for the purchase of the public market index are the same as the capital calls for the HarbourVest fund. The distributions for the sales of the public market index are scaled to represent the same proportion of the fund’s NAV at the time of the distribution. (For example, if the fund distributes 5% of NAV, then 5% of the index NAV is distributed.) The securities comprising the public market benchmarks have substantially different characteristics than the investments held by the HarbourVest funds, and accordingly a direct comparison may not be meaningful.
Additional information
Includes data (prior to 1998) related to transactions that occurred when the HarbourVest team was affiliated with Hancock Venture Partners, Inc.
In considering the prior performance information contained herein, prospective investors should bear in mind that past performance is not necessarily indicative of future results, and there can be no assurance that the Fund will achieve comparable results or be able to implement its investment strategy.
The foregoing performance information includes realized and unrealized investments. Unrealized investments are valued by the applicable general partner in accordance with the valuation guidelines contained in the applicable partnership agreement. Actual realized returns on unrealized investments will depend on, among other factors, future operating results, the value of the assets and market conditions at the time of disposition, any related transaction costs and the timing and manner of sale, all of which may differ from the assumptions on which the valuations used in prior performance data contained herein are based. Accordingly, the actual realized returns on these unrealized investments may differ materially from returns indicated herein.
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The information contained herein is highly confidential and is being provided to you at your request for informational purposes only and is not, and may not be relied on in any manner as, legal, tax or investment advice or as an offer to sell or a solicitation of an offer to buy an interest in any investment sponsored by HarbourVest Partners L.P. or it’s affiliates (the “Fund”). A private offering of interests in the Fund will only be made pursuant to a confidential private placement memorandum (the “Memorandum”) and the Fund’s partnership agreement and subscription documents, which will be furnished to qualified investors on a confidential basis at their request for their consideration in connection with such offering. The information contained herein will be superseded by, and is qualified in its entirety by reference to, the Memorandum, which will contain information about the investment objective, terms and conditions of an investment in the Fund and will also contain tax information and risk disclosures that are important to any investment decision regarding the Fund. No person has been authorized to make any statement concerning the Fund other than as will be set forth in the Memorandum and any such statements, if made, may not be relied upon. The information contained herein must be kept strictly confidential and may not be reproduced or redistributed in any format without the express written approval of HarbourVest Partners L.P. (together with its affiliates, “HarbourVest”).
Investment in the Fund will involve significant risks, including loss of the entire investment. Before deciding to invest in the Fund, prospective investors should pay particular attention to the risk factors contained in the Memorandum. Prospective investors should make their own investigations and evaluations of the information contained herein. Prior to the closing of a private offering of interests in the Fund, HarbourVest will give investors the opportunity to ask questions and receive additional information concerning the terms and conditions of such offering and other relevant matters. Each prospective investor should consult its own attorney, business advisor and tax advisor as to legal, business, tax and related matters concerning the information contained herein and such offering.
Certain information contained herein (including financial information and information relating to investments) has been obtained from published and non-published sources. Such information has not been independently verified by HarbourVest. Except where otherwise indicated herein, the information provided herein is based on matters as they exist as of the date of preparation and not as of any future date, and will not be updated or otherwise revised to reflect information that subsequently becomes available, or circumstances existing or changes occurring after the date hereof.
In considering any performance data contained herein, you should bear in mind that past performance is not indicative of future results. Certain information contained herein constitutes forward-looking statements, which can be identified by the use of terms such as “may”, “will”, “should”, “expect”, “anticipate”, “project”, “estimate”, “intend”, “continue” or “believe” (or the negatives thereof) or other variations thereof. Due to various risks and uncertainties, including those discussed above, actual events or results or actual performance of the Fund may differ materially from those reflected or contemplated in such forward-looking statements. As a result, investors should not rely on such forward-looking statements in making their investment decisions.
None of the information contained herein has been filed with the Securities and Exchange Commission, any securities administrator under any state securities laws or any other governmental or self-regulatory authority. No governmental authority has passed on the merits of the offering of interests in the Fund or the adequacy of the information contained herein. Any representation to the contrary is unlawful.
Additional information
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